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Grove Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in

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Grove Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $201,700. The equipment will have an initial cost of $1,201,700 and an 8 -year useful life. The salvage value of the equipment is estimated to be $201,700. Grove's cost of capital is 11%. Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1 ) Note: Use appropriate factor from the PV tables. Required: a. What is the accounting rate of return? b. What is the payback period? c. What is the net present value? d. What would the net present value be with a 15% cost of capital? e. Based on the NPV calculations, what would be the equipment's internal rate of return? Complete this question by entering your answers in the tabs below. What is the accounting rate of return? Note: Round your answer to 2 decimal places. a. What is the accounting rate of return? b. What is the payback period? c. What is the net present value? d. What would the net present value be with a 15% cost of capital? e. Based on the NPV calculations, what would be the equipment's internal rate of return? Complete this question by entering your answers in the tabs below. What is the payback period? Note: Round your answer to one decimal place. What is the net present value? Note: Do not round intermediate calculations and round your final answer to the nearest dollar amount. What would the net present value be with a 15% cost of capital? Note: Do not round intermediate calculations and round your final answer to the nearest dollar amount. Complete this question by entering your answers in the tabs below. Based on the NPV calculations, what would be the equipment's internal rate of return? Note: Round your answer to 2 decimal places

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